The Victorian Government announced that the payroll tax threshold will increase from 1st July 2016 by $25,000 per annum over the next four years, which equates to a total increase of $100,000 from 1st July 2020.

At the current rate, payroll tax rate of 4.85% it will save business groups in Victoria $4,850 where payroll tax is applicable.

Interestingly, despite the threshold increase, Victoria will still have the lowest threshold which is behind the current national average of $1,050,000. It should however be noted that  Victoria has the second lowest payroll tax rate.

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